This document presentsessential concepts and examples of key aspects of market-based price risk management instruments to replace the failure of international efforts like stabilization funds and international commodity agreements at reducing risk in agricultural supply chains, particularly in developing countries where risks carry very real consequences. The document touches on advantages and risks of different risk hedging mechanisms for both buyers and sellers and how each instrument is used. The key price risk management concepts covered include forward contracts (forwards), futures, swaps, options, and insurance, with concepts, examples and definitions provided for each instrument. In addition to providing examples and explanations of how these instruments can help hedge price risks and market volatility, there is also explanation of how the mechanisms interact and can be combined to hedge risks.